Download the full outcome
Detail of outcome
This response document outlines the further decisions that the government has taken to achieve the reforms announced at Budget 2014, which give individuals greater flexibility in accessing their pension savings.
The written ministerial statement gives an overview of the government’s response and the full details of decisions with regard to private sector defined benefit pension schemes, which was set out in full before markets opened.
The Treasury has also published a simple factsheet that explains the decision on private sector defined benefit transfers.
Budget 2014 announced the most fundamental change to how people access their pension in almost a century. The government proposes that from April 2015 people will be able to access their defined contribution pension savings as they wish during retirement, subject to their marginal rate of income tax. The 25% tax free lump sum will continue to be available.
This consultation outlines the government’s proposals for changing the tax rules to allow people to access their defined contribution pension savings and for introducing a guarantee that everyone with a defined contribution pension will be offered free and impartial face-to-face guidance on their financial choices when they retire.
The government would like to gather views on its proposals. Once the consultation closes on 11 June 2014 the government will consider all responses and publish a ‘summary of responses’. This will set out how the government intends to proceed.
The government would particularly, but not exclusively, be interested to hear from:
- consumer groups
- providers of existing retirement income products
- the wider pensions industry
Update 21 March 2014
A revised PDF was uploaded after a correction was made to page 26, paragraph 3.33. Full details are included within the correction slip at the start of the document.